You are currently thinking about investing in a stock valued at $25.00 per share

You are currently thinking about investing in a stock valued at $25.00 per share. The stock recently paid a dividend of $2.25 and its dividend is expected to grow at a rate of 5 percent for the foreseeable future. You normally require a return of 14 percent on stocks of similar risk. Is the stock overpriced underpriced or correctly priced? Come up with another example to illustrate how the stock price might be overpriced underpriced or correctly priced You may consider the P/E ratio (price to earnings) and the PEG (price to earnings growth ratio in coming up with an answer.)